The Government of Pakistan is preparing to finalize a government-to-government (G2G) agreement with the United Arab Emirates (UAE) for the outsourcing of Islamabad International Airport, sources in the Privatization Commission told ProPakistani.
The Ministry of Finance, Ministry of Defense, and Aviation Division have been directed to jointly develop a comprehensive framework for the agreement. This framework will be shared with UAE authorities after obtaining necessary approvals from the federal cabinet and the International Monetary Fund (IMF).
Sources clarified that Islamabad International Airport will not be outsourced through an open bidding process, as earlier planned. Instead, the new strategy involves direct negotiations under the G2G mode.
Previously, an open bidding model had been considered for the airport’s outsourcing. However, the government seeks a quicker and more strategic privatization under its ongoing economic reform program.
The federal government is so far looking to privatize at least seven state-owned entities during the current fiscal year. These include Pakistan International Airlines (PIA), Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), First Women Bank, House Building Finance Corporation, and Islamabad International Airport.
Final decisions are expected in the coming months as both domestic and international stakeholders review the proposed framework.